Washington DC Office Marketview Q2 2018

•With the ongoing repositioning activity, Class B availabilities in the CBD and East End have begun tightening. Of the Class B product not slated for redevelopment in the near future, the vacancy rate ended Q2 2018 at 9.1% in the downtown core. Subsequently, Class B rents rose $1.80 over the quarter to $49.84 per sq. ft. on a full service basis.

•The amenity race continues to intensify, with owners and developers upgrading buildings with high-end fitness centers, green roofs, golf simulators and the alike in order to help retain and attract tenants.

•Development peaked in the District as six buildings delivered in Q2 2018 totaling 2.4 million sq. ft., at a prelease rate of 64%. By the end of 2019, an additional 4.5 million sq. ft. will be added to the market, with the majority concentrated in the East End (47%) and CBD (24%) submarkets.